Vector Pipeline, L.P. v. 68.55 Acres of Land

157 F. Supp. 2d 949, 2001 U.S. Dist. LEXIS 12012, 2001 WL 915242
CourtDistrict Court, N.D. Illinois
DecidedAugust 14, 2001
Docket99 C 4609
StatusPublished
Cited by10 cases

This text of 157 F. Supp. 2d 949 (Vector Pipeline, L.P. v. 68.55 Acres of Land) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vector Pipeline, L.P. v. 68.55 Acres of Land, 157 F. Supp. 2d 949, 2001 U.S. Dist. LEXIS 12012, 2001 WL 915242 (N.D. Ill. 2001).

Opinion

MEMORANDUM OPINION AND ORDER

BUCKLO, District Judge.

In this condemnation case under the Natural Gas Act, 15 U.S.C. § 717, et seq. (“NGA”), Vector Pipeline (“Vector”) took permanent and temporary easements in several tracts of land in Northern Illinois to build a natural gas pipeline. It acquired the appropriate Federal Energy Regulatory Commission (“FERC”) certification, and invoked its power of eminent domain. When attempts to settle issues and differences with the landowners failed, Vector sued on 14 July 1999. In March 2000, I granted summary judgment for Vector, and appointed a Commission under Fed.R.Civ.P. 71A to determine just compensation due to the defendants. I gave Vector immediate possession in an order of May 15, 2000. Following extensive hearings, the Commissioners submitted their Report. Vector and several defendants offer objections to the Report. I reject these objections, adopt the Report, with the amendment as to the interest rate that the Commissioners set forth in the response to the objections, and order that judgment be entered for the defendants in the amounts specified below.

I.

Under Rule 71A, I accept the Commissioners’ findings of fact unless clearly erroneous. United States v. 573.88 Acres of Land, 531 F.2d 847, 850 (7th Cir.1975); Fed.R.Civ.P. 71A(h) (Commission’s findings have effect of a special master’s report under R. 53(e)(2) (report reviewed for clear error)). The burden of showing the Report to be clearly erroneous is on the party attacking the conclusions. United States v. Certain Land Situated in Ripley, Stoddard and Butler Counties, Mo., 109 F.Supp. 618, 621 (E.D.Mo.1952). I review conclusions of law de novo. Spraying Sys. Co. v. Dela- *952 van, Inc., 975 F.2d 387, 391 (7th Cir.1992). “Just compensation” is “that amount of money necessary to put a landowner in as good a pecuniary position, but no better, as if his property had not been taken.” United States v. L.E. Cooke Co., Inc., 991 F.2d 336, 341 (6th Cir.1993). It is measured by the use that would bring the highest price — the “highest and best” use. United States v. 69.1 Acres of Land, 942 F.2d 290, 292 (4th Cir.1991). In the absence of proof to the contrary, the highest and best use of property is presumed to be its current use. Id. The burden of proving the value of the land taken is on the landowner. United States ex rel. TVA v. Powelson, 319 U.S. 266, 274, 63 S.Ct. 1047, 87 L.Ed. 1390 (1943).

I must first discuss which law controls. Oddly enough, the parties do not disagree on this, but Vector attempts to manufacture a disagreement that does not exist. Vector says that federal substantive law controls the measure of damages in all respects. It accuses the Commissioners of improperly applying state substantive law, although the Commissioners expressly endorse an appraisal format approach approved by the Seventh Circuit using only federal law support, see United States v. 105.40 Acres of Land, 471 F.2d 207, 210 (7th Cir.1972), and reject what they call “the Illinois state court approach.” The Seventh Circuit endorsed the proposition “that the measure of damages is the fair market value of the entire [property] before and after the taking.” Id.

This “before and after” approach was expressly adopted by the Commissioners, who explained that it requires that “the appraiser first value the property as a whole and then value the remainder (including the owner’s rights in the easement strip and in any temporal easements or work space”). The Commissioners cite United States v. 38.60 Acres of Land, 625 F.2d 196, 199 n. 1 (7th Cir.1980) (Damages are measured by the “difference between the market value of the entire tract immediately before the taking and the market value of the remainder immediately after the taking.”). On this approach, the difference between the two values is the basis for determining just compensation. See United States v. Banisadr Bldg. Joint Venture, 65 F.3d 374, 378 (4th Cir.1995); United States v. 8.41 Acres of Land, 783 F.2d 1256, 1257 (5th Cir.1986); United States v. 38.60 Acres of Land in Henry County, Mo., 625 F.2d 196, 199 (8th Cir.1980). These are all federal cases. Vector agrees that this is the right approach, and it fails to substantiate its claim that the Commissioners covertly used an Illinois state law approach in practice despite having officially endorsed the federal “before and after” approach that Vector itself calls for.

In any event, Vector fails to tie its claims about the controlling law to any specific difference in outcomes in damages evaluation. Instead, Vector argues that federal law requires the wholesale rejection of the Commissioners’ findings because the determinations of the Commissioners were clearly erroneous or based on inadmissable evidence.

II.

A.

I now turn to the objections of various defendants, then take up Vector’s objections. The McDonnell defendants object that the Commissioners erred wdth respect to their parcels in not taking into account the effect on the remainder of certain access rights. 1 The McDonnell de *953 fendants say their land could not be developed, given the access rights granted to Vector. The highest and best use of their property is development for mixed-use residential and commercial purposes, but Vector acquired “unlimited” rights to cross the remainder to reach the easement that it took. 2 There was testimony by the McDonnell defendants’ expert appraiser, Christopher Lannert, that it is impossible to develop a plan that is subject to such access.

The issue, then, is the factual question of whether the taking destroys the value of the property for its highest and best use. Lannert’s testimony, the McDonnell defendants say, is uncontradict-ed. But Vector’s appraiser, Joseph Batís, testified to the contrary, arguing that the access rights would have no effect on the value of the remainder. The McDonnell defendants argue that the Commissioners found Batís’ testimony “unpersuasive.” What the Commissioners rejected, however, was the flat claim that there would be no effect on the value of the property.

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157 F. Supp. 2d 949, 2001 U.S. Dist. LEXIS 12012, 2001 WL 915242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vector-pipeline-lp-v-6855-acres-of-land-ilnd-2001.